Dive Brief:
- Meijer has finished remodeling 22 supercenters as part of an aggressive plan to update its stores, according to The Produce News.
- Over the past two years, Meijer remodeled more than a quarter of its 235 stores. The latest completed remodel created a flagship store in Rockford, Michigan that can be used to test innovation and improvements.
- Features of the six-month major remodel included an enhanced store layout, updated pharmacy area, expanded grocery, health and beauty sections, updated apparel and an all new pet department.
Dive Insight:
Quality products and low prices are important in winning the battle for customers, but the shopping experience is also key. Meijer recognizes this and is dedicated to remodeling its stores to create the environment that makes consumers happy to shop there. Consumers still prefer brick and mortar shopping experiences to those online, and Meijer and numerous other retailers are hoping to make the most of that opportunity.
Meijer announced last March that it was investing $375 million in new and remodeled stores, including seven new supercenters and 22 remodel projects. This is in addition to previous store upgrades to almost 90 stores since 2010, and the opening of 50 new stores within that same time. In addition to superstores, Meijer announced it will build two small format urban grocery stores — one in Grand Rapids and one in Detroit.
Meijer isn’t the only store that has the construction bug. Close competitor Target is also on a remodeling kick, updating 110 stores this year and 300 next year. With a healthy $2 billion budget for 2017 and $7 billion over the next three years to remodel current locations and build 100 small format stores to urban locations, Target is banking that the improvement will increase same store sales 2-4%.
Walmart, too, is improving the appearance of its stores, and will spend an estimated $1.6 billion updating between 400 and 600 stores this year. Some of the changes will make it easier for customers to pick up online groceries, and some alternations will include improving sight-lines by lowering shelves, building a lounge for customers picking up online orders and expanding grocery sections with more fresh and organic products. Walmart is also experimenting with tech-enhanced Next Gen stores where technology blends with service to more closely align with consumer behavior—an intriguing idea that could help the company improve its reputation for shaky customer service.
What do these changes indicate? That retailers are focused on higher-margin goods at a time of intense pricing pressure, for one. Looking at the bigger picture, though, these behemoths are trying to differentiate themselves from competitors, including large, small and niche grocers and retailers. Big-box retailers like Target and Meijer have an opportunity to create large, one-of-a-kind destinations that appeal to the many shoppers looking not just for a place to buy clothes and groceries, but for a true shopping experience.